Infosys shares surged over 1% to Rs 1897.25 on BSE at 9:20 am after reporting strong Q3 results.
The company reported a consolidated net profit of Rs 5,809 crore for the three months ended 31 December 2021 (Q3FY22), a 12% rise over the previous year’s figure of 5,197 crore.
Meanwhile, its operations revenue increased by 23% to Rs 31,867 crore from Rs 25,927 crore the previous year.
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The business has raised its revenue projection for FY22 to 19.5% -20%, owing to a sequential increase of 7% in Q3.
According to Infosys, growth was broad-based and deal momentum was strong during the quarter, with digital transformation quickly spreading across sectors and geographies.
Large deal wins accelerated in Q3, with a Total contract value (TCV) of $2.53 billion. The operating margin was 23.5% for the quarter, with free cash flow conversion at 92.6%.
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In constant currency terms, revenues increased by 21.5% over the previous year and 7% over the previous quarter.
In dollar terms, the company’s reported revenues were $4,250 million, showing a 20.9% increase year on year.
Meanwhile, digital revenues accounted for 58.5% of overall revenues, with a 42.6% year-on-year increase in Constant currency (CC).
Operating margins were 23.5%, down 2% from the previous year.
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“Our strong performance and market share gains are a testament to the enormous confidence our clients have in us to help them in their digital transformation. This stems from four years of sustained strategic focus on areas of relevance for our clients in digital and cloud, continued re-skilling of our people, and deep relationships of trust that our clients have with us. This is reflected in an upgrade in our revenue guidance to 19.5%-20% for FY22. We expect the healthy technology spend to continue with large enterprises progressing on their digital transformations”, said Salil Parekh, CEO and MD of Infosys.
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The attrition rate at Infosys has increased dramatically to 25.5%, up from 20.1% in the preceding September quarter and 11% in the same period last year.
To address growing attrition, the corporation said that it had expanded recruiting to more than 55,000 for the current fiscal year.